EC vice-president Olli Rehn suggests Greece deal by weekend

By: Jonathan Boyd | 27 Jan 2012

Olli Rehn, vice-president of the European Commission and responsible for economic and monetary affairs and the euro, said in Davos today that a deal with private lenders on Greek debt could be struck this weekend.

“The next three days will be very crucial for the future in three years. In other words, We’re just about to close a deal on private sector involvement between the Greek government and the private-sector community, preferably still in January rather than February.” Rehn was reported saying by Bloomberg.

“We need to have a sustainable solution for Greece. PSI won’t be applied to any other country of the eurozone.”

An agreement could come as soon as today, but “if not today, then over the weekend.”

Lagarde hedges

In contrast to Rehn’s optimism, Christine Lagarde, managing director of the IMF, said in a separate interview that her objectives were clear and focused: for Greece to get its debt/GDP ratio to 120% by 2020.

She suggested that without measures to ensure that would happen, then the IMF would not buy into the rescue process.